San Diego, CA Name of Customer Representative: James Salyer, Lead USAF AFMC 303 AESG/SYCB Phone Number:

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1 Upon completion of Phase 1, narratives will be reviewed for fit for excellence and qualified nominees will then be provided with the Phase 2 submission form by no later than March 15. The Phase 2 forms will be due June 24, Finalists and best practices will be identified by no later than September 7. Submission and Questions Questions and submissions should be directed to Carole Rickard Hedden Project Leader, Aviation Week Program Excellence Initiative chedden1@cox.net / carole_hedden@aviationweek.com Phase I Submission Name of Program: Name of Program Leader: Brad Mulder Phone Number: brad.mulder@ngc.com Postage Address: Goldentop Road San Diego, CA Name of Customer Representative: James Salyer, Lead USAF AFMC 303 AESG/SYCB Phone Number: James.salyer@wpafb.af.mil 2013 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 1

2 Bio for program leader: Bradley D. Mulder Director, Global Hawk UAS Production Programs Unmanned Systems Division Northrop Grumman Corporation Bradley D. Mulder serves as director of Global Hawk Production Programs for Northrop Grumman s Global Hawk UAS within the High-Altitude Long Endurance (HALE) Systems Enterprise. With more than 28 years commercial and defense industry experience, Brad joined the Global Hawk team in Rancho Bernardo, Calif., from the company s Space Technology sector in 2004 as product delivery integrated product team (IPT) leader. Most recently, he served as HALE air vehicle IPT leader from January 2005 to May Prior to that Brad enjoyed a variety of assignments in the commercial automotive industry for TRW, which was later acquired by Northrop Grumman. Brad s previous assignments included leading the TRW Vehicle Safety Systems Incorporated (VSSI) Mexican operations material organization from , and spearheading Lean deployment from for TRW Ross Gear Division in Lafayette, Ind., while serving as plant manufacturing manager. He also served in various other TRW commercial roles, including VSSI seat belt program manager and product planning manager in Romeo, Michigan. Brad completed a corporate rotational program from for TRW Inc based in Cleveland, Ohio following his assignment as missile systems engineer for TRW s Space Technology sector from Brad holds a bachelor s degree in aerospace engineering from the University of Colorado and master s degrees in industrial and systems engineering and business administration from the University of Southern California. He is a certified Six Sigma master black belt and a licensed private pilot AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 2

3 Phase I Program Narrative - 1 Overview: The Global Hawk Production Program stood up a robust Production Enterprise across two core manufacturing assembly locations and over 300 key suppliers all while continuously improving Production Program performance. Although operating in a complex environment that includes ongoing development as well as sustainment phases, the Program was recognized for a best in class Manufacturing Readiness Assessment (MRA) process at the 2011 Defense Manufacturing Conference as well as being recognized for Supply Chain Integration Excellence at the 2011 Aviation Weekly Aerospace and Defense Conference. The program delivered the 38 th production Global Hawk to the USAF in 2013 with most recent deliveries significantly ahead of schedule to the benefit of the USAF customer. Many lessons have been learned through the years that are now being systematically passed on to current and future users of the GH Enterprise including USN Triton and NATO AGS. A variety of just do it, Lean and Six Sigma projects contributed to the success of the Program but none were more important than the transition of Production Flight Acceptance from Edwards AFB to Palmdale Plant 42. This innovative idea has been the key driver for significantly improving schedule performance wherein production deliveries have consistently meet or beat contract delivery requirements over recent years. It is also noteworthy to mention that not only have the delivery metrics improved, the as delivered quality has also been excellent and zero customer CEII (Configuration End Item Inspection) findings have been recorded during customer sell off for several consecutive deliveries. This performance has been recognized by the customer through improved CPAR reports. The Production metrics tell the story across the Enterprise robust stand up of flexible manufacturing including systems integration, integrated value chain, excellent quality, customer satisfaction, keen risk management, affordability focus and EVMS results. Value Chain Approximately 80% of the program is outsourced to a robust, proven supply base. Participation in the Global Hawk production program is based on quality, cost, intellectual property and strategic considerations. Once qualified as a Global Hawk supplier, participation in the integrated Supplier Management process is initiated. The major suppliers are inserted into the Program IPT structure and managed by our Global Supply Chain organization Subcontract Management Teams (SMTs). Program reviews are scheduled on a regular basis to formally evaluate subcontractor progress and identify problem areas and subcontractor plans for needed corrective action. The following elements of subcontractor performance are integrated into the proactive management of the supplier: 2013 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 3

4 Phase I Program Narrative - 2 Integrated Master Schedule status of accomplishments, planned activities, and open action item status Cost performance overview to date and forecast for completion, controlled by work breakdown structure and cost account level Technical overview covering accomplishments against technical objectives established in the SSOW and IMS Risk Management Issues Configuration Management Status Deliverable Data status Two other key differentiators to the NGAS value chain management approach include the use of our Supplier Assessment Management Systems (SAMS) visibility and measurement tool as well as our approach to fact finding supplier proposals. SAMs is used to provide an objective data summary and IPT assessment of Supplier performance on the program. It provides feedback to Suppliers to facilitate successful execution of subcontracts relative to prime contract performance. The SAMS process is used to monitor and assess Supplier performance to identify problems early and enable development of solutions in conjunction with the Supplier before prime contract performance is affected. It provides assessment ratings based on data related to primarily the supplier s technical, mission assurance, cost, and schedule and management performance. Fact-finding of supplier proposals at NG entails a comprehensive evaluation of a supplier proposal including the review and evaluation of the proposed contractual (T&C s), technical, schedule, and cost and pricing data and is the foundation used to determine the basis for supplier contract negotiation and award. The results of the review and findings are formally documented in a Price/Cost Analysis Report (PCAR). Transition to Production As mentioned, the Global Hawk Production Program has been and remains highly concurrent with both Development and Sustainment phases of the Program. Although Production Readiness Reviews were integrated into Quarterly Program Reviews at all major subcontractors early in the program, the program recently conducted a formal Manufacturing Readiness Assessment (MRA) in support of a Full Rate Production (FRP) decision. The MRA was conducted by Northrop Grumman with the assistance of government experts. The execution of the MRA was heralded as an excellent example at the 2011 Defense Manufacturing Conference. The capstone project for transition to Production was the movement of all Global Hawk Production Flight Operations from Edwards Air Force base to Palmdale plant 42. Prior to 2010, each new production GH would fly its first Operational Check Flight (OCF) from Palmdale to EAFB. While at EAFB, the sensor would be installed and the aircraft and sensor would be put through a series of ground and flight events to verify the system meets its requirements. The Production team initiated a NGAS funded feasibility study to determine the merits of moving all Production flight operations to Palmdale. Following the completion of the internal study as well 2013 AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 4

5 Phase I Program Narrative - 3 as a customer funded detailed analysis, NGAS was put on contract to transition the statement of work to where it belongs Palmdale Manufacturing Center. The success of this project allowed the Program to overcome concurrency between development and production activities and deliver capability to the warfighter sooner. Development Test activities are now dedicated to Edwards Air Force Base while Production activities are dedicated to our Palmdale facility. This project will also help the Palmdale site grow as it accepts more activity from other customers including the Navy (BAMS), NATO and FMS. Initial results included a 550% increase if Palmdale flights, a 260% increase in deliveries and a 400% increase in deployed aircraft. In addition to the successful transition of flight operations, the Production program successfully stood up a robust system integration line. This line has been used for three Block 30I to BL 30M retrofits as well as multiple sensor installations and deliveries. The program has dramatically reduced the time to install/integrate sensors on the aircraft as well as the number of flights required to sell off the systems. Affordability Affordability has been the key focus of the Program as we strive to support the needs of our customer to meet a growing demand for military system with a shrinking budget. A number of key improvements have been implemented as part of the overarching drive to affordability: - DD250 Kaizen - resulted in reduced flights, improved document flow, and concurrent Acceptance Test Procedure (ATP) data review - Engaged suppliers to resolve produceability, manufacturing, and quality issues thus improving system performance, affordability, and on time delivery - Established common processes across different customers but allowed for the individual needs of each customer community. (Example:DD250 process) - Optimized the Enterprise Production schedule to minimize impacts due to customer directed delivery changes and other factors impacting program schedules. - Successfully stood up a robust and proactive DMS process across the Enterprise and avoided significant redesign costs as well as numerous TO updates. - Participate in an opportunity management process which identifies, documents, tracks, quantifies, and reports on opportunities to reduce cost across the Program s lifecycle. - Support Supplier Affordability Summits to engage our suppliers and ensure commitment towards achieving our cost reduction goals. Support Employee recognition programs and contests that have been put in place to engage our employees, drive Affordability into the culture, and ensure we attain our goals AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 5

6 Phase I Program Narrative - 4 Summary: In summary, the USAF Global Hawk Production Program is meeting or beating customer expectations and setting the mark for synergy and collaboration. This performance has been achieved through the focused efforts of many key contributors across the joint team. The Program has come from a time of rapid weapon system deployment and the associated highly concurrent operations expected with development to the current state of excellent and sustained Production Program performance AVIATION WEEK PROGRAM EXCELLENCE INITIATIVE 6